By Dean Seal

MedAvail Holdings Inc. has reached an agreement to sell certain assets from its SpotRx pharmacies to CVS Health Corp.'s retail pharmacy chain.

The Phoenix-based company said Thursday that it will sell assets from SpotRx locations in Arizona, California, Michigan and Florida to CVS Pharmacy Inc.

Pharmacy records and inventory included in the deal will be transferred to nearby CVS Pharmacy locations, allowing it to continue providing care for SpotRx customers. CVS plans to interview SpotRx employees who are interested in joining the CVS team.

MedAvail said last week that it would lay off three-quarters of its staff and sell its pharmacy-services assets and SpotRx businesses, hoping to become profitable with a pivot toward its pharmacy-technology business. It currently estimates that the restructuring should cost about $6.5 million in the first half of 2023.

The company said Thursday that proceeds from the CVS sale will be used to pay down an existing loan facility. After that happens, the facility should have a remaining debt balance of about $2.5 million.

The deal is expected to close in the first quarter of 2023.

MedAvail shares rose 10.4% to 54 cents in premarket trading.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

January 26, 2023 09:00 ET (14:00 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.
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